New York State Assemblyman Steve Labriola recently reminded taxpayers that beginning in tax year 2001, for full-year resident taxpayers, a refundable credit for college tuition expenses can now be phased in over a four-year period.

"I urge all residents in the 12th District who are paying for a college education to take advantage of this tax deduction," said Labriola.

According to Labriola, expenses that qualify for the credit include tuition required for the enrollment or attendance of the taxpayer, the taxpayer's spouse, or a New York tax dependent of the taxpayer at an institution of higher education. Tuition paid by scholarships or financial aid is not eligible, and tuition for post-graduate study is also excluded.

The maximum amount of qualified college tuition expenses allowed in computing the credit or deduction is $10,000, phased in as follows:

* For expenses of $5,000 or more, the amount of credit is 4 percent of the allowable expenses multiplied by the phase-in-percentage; and,

* For expenses of less than $5,000, the credit equals the lesser of $200 or the amount spent, multiplied by the phase-in percentage.

The phase-in percentage are as follows:

- In 2001, 25 percent of such expenses are allowable;

- In 2002, 50 percent of such expenses are allowable;

- In 2003, 75 percent of such expenses are allowable; and

- After 2003, 100 percent of such expenses are allowable.

"It is important that parents of a college student pay the student's undergraduate tuition expenses directly so that the payment qualifies for the college tuition credit. For taxpayers who chose not to use this credit, a personal income tax itemized deduction can be used in its place," said Labriola.